Best Western’s most frequent guests spend a lot more time in cars than they do on planes. In a recent survey, 63 percent of members of the Best Western Diamond 100 advisory board said that nearly all of their business trips are road trips.
If you one of those road warriors who spend a lot of time behind the wheel and have been watching gas prices average nearly a dollar more than last year, this should be music to your ears.
The IRS has announced that it is raising the standard mileage rate 4.5 cents from 51 cents to 55.5 cents per mile for business travel from July 1, 2011 to Dec. 31, 2011.
Regarding this relatively unusual mid-year adjustment, the IRS said, “This year’s increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices.”
The IRS standard mileage rate is the maximum amount you can deduct from your taxes for business use of a personal vehicle (owned or leased). It’s also the figure used as a guideline for companies reimbursing employees who use their personal vehicles on company business.
This means that through the end of this year you can deduct (or expect to be reimbursed) $222 for a 400-mile road trip in your car, up from $204 in the first half of this year.